A Research On The Development Of The Trade In Intermediate Goods Between China And Asean

Intermediate goods trade has become the main form of international trade since the 1970s, under the background of economic globalization and technological progress. Via international division and intermediate goods trade, developed countries and developing countries have specialized in the specific process and parts and components in the chain of production and trade, which has affected their industries structure, employment structure and income distribution. China and Asean has imbedded into the system of international division of labor, and has become important parts of the global production and trade networks, so the research on the development of intermediate goods trade between China and Asean is significance.Analysing the data from 1998 to 2006, the bilateral trades of intermediate products share a very high proportion, and trade deficits of intermediate goods are the main reason for China's trade deficit with Asean countries.From analysis on the angle of international division of labor, China's level of international division of labor is lower than Asean as a whole. The main factors of impacting its development are factor endowments, geographical factors, the cost of cross-border transactions of intermediate products, and investment location choice of transnational corporations.Further more, the paper analyses the economic impact of China-Asean intermediate products trade. According to current statistics data, applying to empirical analysis of cointegration relationship, the results show that: China-Asean trades in intermediate goods promote China's economic growth. In the long run, whether it is China's exports of intermediate products to Asean, or China's imports of intermediate products from Asean, has actively influence on China's economic growth significantly. On the other hand, the trades also impel Asean's economic growth. At last, on the basis of the analysis, relevant policy recommendations are proposed.